Wednesday, 9 May 2012

M'sia's economy to remain stable in 2Q 2012

KUALA LUMPUR (May 9): Based on the latest economic indicators, Malaysia's economy is on a stable foundation and this is expected to continue in the second half of this year, the Dewan Negara was told on Wednesday.

Deputy Finance Minister Datuk Dr Awang Adek Hussein said that between January and February this year, the country's exports rose 7.1% while imports grew 10.2% compared with the same period last year.

"The industrial production index, meanwhile, expanded by 3.8%. In the same period, imports of capital goods recorded a high growth of 32.9% compared with the corresponding period last year.

"In addition, crude palm oil price as at April 25, 2012 was stable at RM3,450 per metric tonne while rubber was at RM10.88 per kilogramme," he said in reply to a question from Senator Tengku Aziz Tunku Ibrahim who asked on the government's level of readiness in facing the eurozone crisis.

Awang Adek said on the same date the KUALA LUMPUR COMPOSITE INDEX [] (KLCI) was at a higher level at 1,579 points against 1,530 points at end-December last year.

He said investors' confidence continued to rise supported by an increase in foreign investments of 12.3% to RM33 billion last year.

"Private investment activities are expected to be active spurred by business opportunities from the implementation of the Economic Transformation Programme and Government Transformation Programme as well as the government's key initiatives to attract investments," he said.

Meanwhile, Deputy Minister of International Trade and Industry Datuk Jacob Dungau Sagan said trade between Malaysia and Myanmar rose to RM2.42 billion last year from RM1.92 billion in 2010.

"Malaysia's exports to Myanmar grew to RM1.71 billion last year compared with RM1.18 billion the year before, while its imports from Myanmar amounted to RM710 million in 2011 and RM730 million in 2010.

"Malaysia's investments in Myanmar totalled US$977.6 million (RM2.99 billion) involving various investments such as CONSTRUCTION [], hotels, petroleum and manufacturing," he said.

Jacob said this in reply to a question from Senator Datuk Chiw Tiang Chai and Senator Datuk Mohammad Najeeb Abdullah who asked on the current status of investments and trade between Malaysia and Myanmar.

He said the government welcomed the changes in Myanmar which had started to practise a more open political and economic policies.

"The Ministry of International Trade and Industry is now actively taking efforts to strengthen bilateral relations as well as explore investment opportunities in Myanmar," he said. — Bernama